Image for representational purposes only. Source: Special Arrangement.
The government is with the micro, small and medium enterprises (MSME) of the country, an official of the MSME assured the assembled representatives of such firms on Tuesday (September 9, 2025), in reference to global headwinds that have triggered supply chain disruptions.
“It is important to understand that the government is not going anywhere,” Joint Secretary in the Union Ministry of Micro, Small and Medium Enterprises (MSME) Ateesh Kumar Singh said speaking an an event organised by the PHDCCI. “Please have the confidence, give us some time, [and] things would be working.”
Mr. Singh added that the headwinds would be tackled “very firmly, diligently and deftly”.
The Joint Secretary pointing to the earlier disruptions triggered during the COVID-19 pandemic, and emphasised that “we [the government] withstood the pressures, understood the risks and tried to find solutions around it”. He added that the government stood “solidly and firmly” behind the MSMEs.
Absorbing profits “not a sustainable solution”
Mr. Singh, referring to internal documents being prepared to assess the prevailing tariff situation, noted that several companies have incorporated tariffs into their profit margin so that the landing cost remains the same.
“That may be there but that is not a sustainable solution, we need to do more,” he stated. He also said the government has taken note of production shifting or trading rerouting taking place through Nepal and Sri Lanka.
The Joint Secretary noted in his address that such headwinds would keep coming “[every] now and then”.
“So, we need to have that kind of strategy available with us so that we have one template on how to deal with certain such disruptions,” he emphasised, stating the ministry was working towards the same.
Need for diversifying exports
Speaking at the same event, Rajan Sudesh Ratna, Deputy Head and Senior Economic Affairs Officer, United Nations Economic and Social Commission for Asia and the Pacific (UNESCAP) emphasised that it was now time to utilise the current free trade agreements (FTAs) to their full potential. The officer noted that currently the utilisation was “less than 10%”.
Separately, Mr. Ratna also emphasised the need for export diversification, and the need to access markets that could be the other big importers of the products that are currently facing high U.S. tariffs.
“There is a need to look at markets which are top importers of the product,” he said. Although taking note of assertions about the process taking time, Mr. Ratna emphasised, “What option do we have?”.
Referring to the present situation, he pointed to the tariffs imposed by the U.S. in April as compared to those currently in place. “You must look at the credibility of the partner, if a country like U.S. does not respect its 30-year-old agreement with Mexico and Canada, you are in a false belief that your new friendship will take you to the new world order,” he said.
Published – September 09, 2025 08:25 pm IST
